In a legal battle spanning several years, Amazon finds itself at the center of a lawsuit accusing the tech giant of colluding with major American publishing houses to maintain high prices for ebooks, raising concerns about monopolistic practices. While publishers are sidelined from the proceedings, the allegations persist.
The legal saga began in January and March 2021 when Hagens Berman, a law firm, initiated two separate lawsuits in American courts. The first lawsuit targeted Amazon alongside five major publishers — Hachette, HarperCollins, Macmillan, Simon & Schuster, Penguin Random House — alleging collusion on ebook prices, while the second focused on online sales conditions for print books and wholesale pricing agreements with retailers.
However, both lawsuits were dismissed in September 2022 for lack of substantial evidence. Nevertheless, a window of opportunity remained for the plaintiffs to amend their claims.
Seizing this opportunity, Hagens Berman shifted its focus towards Amazon’s ebook pricing by the end of 2022. The subsequent lawsuit alleged that Amazon’s dominant position in the ebook market allowed it to “coerce” publishers into accepting contractual terms that limited price competition and availability.
It’s claimed that Amazon ensured higher margins for itself without overtly charging higher prices compared to its competitors. Consumers behind the lawsuit feel deceived, arguing that their ebook purchases were more expensive due to Amazon’s alleged monopoly and pricing strategies.
Judge Valerie Figueredo, tasked with evaluating the credibility of the plaintiffs’ arguments, showed more leniency towards this new lawsuit. While she found the depicted situation “plausible,” she dismissed the notion of a “conspiracy” between Amazon and publishers.
On March 4, Judge Gregory Woods of the Manhattan district pronounced his verdict on the latest lawsuit, significantly narrowing its scope based on Judge Figueredo’s recommendations. He permitted the consideration of claims from only two out of fifteen plaintiffs cited by Hagens Berman.
Judge Woods ruled that only consumers who purchased ebooks from Amazon could potentially sue the company for anti-competitive behavior and excessive pricing. The other thirteen plaintiffs had indeed purchased ebooks, but from competitors such as Apple and Barnes & Noble.
The publishers named in the lawsuit — Hachette, HarperCollins, Macmillan, Simon & Schuster, Penguin Random House — were entirely excluded from the proceedings by the court, as reported by Reuters. The possibility of collusion between these publishers and Amazon failed to convince the judiciary.
Notably, in 2011, Hagens Berman successfully prosecuted another tech giant, Apple, for similar allegations of ebook price-fixing, involving many of the same publishers. Apple was ordered to reimburse consumers $400 million, while the publishers reached a settlement with the authorities for $166 million.
